This Philippines mobile trends report combines data from a recent survey of over 900 mobile internet users (smartphone and feature phone), and other publicly available research. Mobile internet users is a small but fast growing group of people in a country where 18 million Filipinos live live on $1.25 a day or less. The survey was conducted by On Device Research in mid-June, 2014. Source: Asian Development Bank 2013

ON Language preference of the mobile internet users 40% English 60% Filipino OO ON ON ON ONON ON ON ON ON Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

> +! Smartphone penetration is growing faster in the Philippines than Indonesia and Vietnam combined Source: International Data Corp 2014

]] Android smartphones from the local “Big 3” are priced in the $50-$250 range O ] Lower priced local brands are expected to drive smartphone growth

Samsung rules, for now Very competitive market, lots of diﬀerent brands with low market share making up almost a third of the Android phones in use 3% 3% 3% 5% 7% 7% 29% 43% MyPhone Alcatel LG Lenovo CherryMobile Sony Other Samsung Source: On Device Research, June 2014 n=900 Android users in the Philppines

Huawei is aggressively targeting the smartphone market, aiming to gain 10% market share by 2015. In June 2014 it launched Ascend G6 at half the price ($228) compared to the previous model P6. Other Chinese brands like Oppo and Xiaomi are likewise eyeing the country for their Asian expansion. Huawei has eyes on the Philippines Source: Tech in Asia, Philippine Star

16-24 53%25-34 35% 35-44 9% 45+ 3% 88% of the total mobile internet population is under the age of 34! N] ]] Mobile market is young and will continue to grow – it’s vital for brands to target these young mobile-ﬁrst consumers. Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Top mobile carriers in the Philippines ` ON 54% share 29% share 46 million subscribers 24.5 million subscribers Other service providers include Sun Cellular, Talk’N Text, Touch Mobile, and ABS-CBN Source: Zong

15% 17% 12% 8% 11% 13% 2% 1% Less than P99 P100-P299 P300-P499 P500-P799 P800-P999 P1,000-P1,799 P1,800-P2,499 More than P2,500 Note: 1 Philippine Peso equals 0.023 US Dollar 44% spend less than $12 a month on mobile plan Q. Approximately how much do you pay on average per month for your mobile plan? $12 per month $41 per month Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

The Philippines has one of the slowest LTE speeds worldwide Smart Communications is the 5th slowest network among 38 surveyed with 4.43 Mbps Globe Telecom is the 7th slowest network with 6.46 Mbps * Australian networks have the fastest LTE with 24.5 Mbps Source: Open Signal Photo: EricOuano

40% of smartphone owners in the Philippines spend over 5 hours a day on their phone Source: Global Web Index =

94% of internet users in the Philippines use Facebook Only 54% in the US do F F G F G F G F FG F G F G Source: Tech in Asia

42% of total screen time in the Philippines is on social media Filipino social media users are #1in the Asia Paciﬁc region spending 4 hours/day in all social channels China: 1.5 hours/day Indonesia: 2.9 hours/day Source: Tencenet, Facebook, CNNIC, Statistic Brain

Apps are extremely popular 32% of Filipino smartphone owners download six or more apps per month 45% of these people have paid for app installs or in-app purchases each month 78% of mobile internet users downloaded an app or game in the last month Source: Jana 2014, Vserv 2013

b 2% 3% 4% 8% 10% 11% 19% 29% Virtual gifts Gift cards Physical items Calls worldwide Stickers Videos Music Games 52% have recently bought something on their phone Q. Which of the following have you purchased via a social messaging app within the past week? Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

In November 2013 Typhoon Haiyan devastated the Philippines killing over 6,250 people and injuring another 28,650. App developers and mobile operators stepped in to save lives change the way people are warned about natural disasters in the future. Disaster warnings go mobile Source: Wikipedia

Apps like RaincheckPH and iTyphoon alert users of weather threats However, only 16% of mobile internet users have used one of these typhoon warning apps. What about the rest? Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

In June 2014 the Philippines passed a law ordering all mobile operators to send warnings to those in the path of typhoons and other natural disasters. Mobile emergency alerts are now required by law Source: Dailyjournal, June 2014

Typhoon relief gave mobile cash usage a boost Globe BanKO partnered with Mercy Corps to help people receive mobile cash transfers as only 27% of people have bank accounts. Nearly 22,000 households were introduced to the service, receiving much needed ﬁnancial support to recover from the disaster. Source: GMA News, May 2014

73% of the Filipino population does not have a bank account Credit card penetration is only 3% Alternative payment methods have cropped up to cater the cardless population. Source: Tech in Asia, World Bank Photo: Kevin Servigon The average population is quite diﬀerent from the mobile internet users…

9% 8% 8% 10% 11% 12% Other payment services BancNet PayCash by Pesopay Smart Money PayPal GCash Over half have used online payment services in the last 3 months Q. Which payment services have you used in the last 3 months? Other payment services include for example Dragon Pay, Apptivate and Bitcoin. Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Ewallets from leading mobile providers are the most popular O Ewallets like Smart Money and GCash allow users to pay bills, reload airtime, and transfer money to businesses and people O Users load ewallets with cash via in store transactions O 22% use either Smart Money from Smart Communications or GCash from Globe Telecom Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Online cash payment platforms # • Cash payment processing services that allows merchants to sell online and get paid in cash. • Merchants can accept cash payments at more than 5,000 outlets nationwide. • Usage of these services isn’t widespread yet – only 8% have used PesoPay. Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Over half are streaming music Q. Which of the following music streaming services do you use regularly (at least once a week)? 8% 3% 6% 8% 10% 11% 13% Other Amplify Radio Republic Soundcloud My Pinoy Radio Spinnr Spotify Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Globe Telecom oﬀers its GoSURF mobile data plan subscribers free Spotify Premium access. 70% of people who said they use Spotify are on GoSURF data plan. Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines Spotify usage edged on by telco tie-in

On Device Research uses the mobile internet to gain access to consumer opinions at any time, place or country. Want Excel tables with the survey data? Contact siim@ondeviceresearch.com